Help w/Inheritance

[LOL!]

If one is not contributing the maximum to retirement accounts at the moment, then one can use this inheritance to do so. The way to do that is bump up your 401(k)/403(b) contributions to the maximum and contribute the max to Roth IRAs as well. If that doesn't leave enough in your paychecks to pay the bills, then withdraw money from the inheritance to pay the bills.

Of course, this presumes that the inheritance is not in the form of an inherited IRA or other vehicle where withdrawal would cause extra taxes.

[jclarksnakes]

That 100 thousand you are not investing to keep it safe and sound is totally not safe from inflation. Inflation is relatively low here recently but it still is eroding the value of anything we keep in cash. That erosion over time will seriously decrease the real value of that money.

[John Galt III]

DebER, How was the tax hit on that inheritance? Did you have to pay personal income taxes on it for the year you received it? Thanks

[DebER]

Quote:

Originally Posted by John Galt III DebER, How was the tax hit on that inheritance? Did you have to pay personal income taxes on it for the year you received it? Thanks

Yes I did, John.